A worker at YTO Express in Shanghai sorts out packages for delivery. (Photo : www.globaltimes.cn)
Chinese e-commerce giant Alibaba Group has announced plans to invest in one of the country’s leading express delivery services, which is expected to grow in the coming years, the China Business News reported.
A statement released by Alibaba on its website on May 14 said that the company, together with Chairman Jack Ma's Yunfeng Capital, had acquired a stake in YTO Express, which has a 20-percent share in the national market.
The report, however, did not indicate the exact amount of the investment or the percentage of stake acquired by the company, although the website cited that the deal involved a 10-percent stake in the express delivery company.
Xu Yong, chief consultant at Express Consulting, said that Alibaba chose YTO's network to help the e-commerce firm enhance its service, especially its delivery services as it considers expanding into cross-border deliveries.
Yu Weijiao, YTO chairman, said that the two companies are planning to build a global express delivery service that can offer clients with a variety of products and better last-mile service.
"Chinese private delivery services are still lagging behind global delivery giants such as UPS and FedEx in terms of the management team, networks and the information system. I believe Alibaba can help bridge the gap," Yu said.
YTO unveiled a plan to create a global package delivery alliance last month that attracted interest from over 10 companies, including CJ Korea Express and Japan's Seino Transportation.
In addition, YTO and four other delivery companies--STO Express, ZTO Express, Yunta and SF Express--have reportedly established a joint venture with a Shanghai-based company.
According to the statement on the website, the five companies have shared equally as partners in the venture, with Yu named as chairman.
